The Fed

Mark Thornton argues Washington is trying to manage bond yields, suppress gold’s warning signal, and sell AI as an inflation cure—even as debt and malinvestment pile up.

The war could not have been financed under the old gold standard.

Because of Keynesian inflationary bias, economists, politicians, and journalists celebrated the huge financial moves that Ben Bernanke made in 2008 and beyond to deal with the financial meltdown and its aftermath. But Bernanke’s moves didn’t help the economy; they made things worse.

Federal Reserve policy has been to expand credit out of nothing without regard for the real damage it does to the economy.

The Federal Reserve’s fixation with “stable prices” has led to an unstable economy for the past century. 

Federal Reserve policy has been to expand credit out of nothing without regard for the real damage it does to the economy.

The Federal Reserve’s fixation with “stable prices” has led to an unstable economy for the past century. 

Mark Thornton explains the Fed’s real problem: the power to paper over debt, deficits, war, and market cracks until the bill hits consumers.

Trump has made his family billions by courting foreign and corporate money and accepting extravagant gifts while in office. But he didn’t bring self-enrichment to Washington, he simply made it much harder to ignore.

By shielding Washington from accountability, the 2008 cover-up institutionalized systemic moral hazard and permanently crippled market discipline.